Three Dividend Stocks To Enhance Your Income Portfolio

As global markets react to the Trump administration's emerging policies, with U.S. stocks reaching record highs amid optimism over potential trade deals and AI investments, investors are keenly observing opportunities to enhance their portfolios. In this dynamic environment, dividend stocks stand out as a reliable option for generating income, offering stability and potential growth even amidst market fluctuations.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.18%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	4.05%	★★★★★★
CAC Holdings (TSE:4725)	4.46%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.45%	★★★★★★
GakkyushaLtd (TSE:9769)	4.37%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.01%	★★★★★★
Guangxi LiuYao Group (SHSE:603368)	3.41%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.53%	★★★★★★
HUAYU Automotive Systems (SHSE:600741)	4.46%	★★★★★★
E J Holdings (TSE:2153)	3.96%	★★★★★★

Click here to see the full list of 1938 stocks from our Top Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Orascom Construction (DIFX:OC)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Orascom Construction PLC is an engineering and construction contractor that undertakes infrastructure, industrial, and high-end commercial projects across the United States, the Middle East, Africa, and Central Asia with a market cap of $578.78 million.

Operations: Orascom Construction PLC generates its revenue primarily from projects in the USA, accounting for $1.78 billion, and the MENA region, contributing $1.54 billion.

Dividend Yield: 7.4%

Orascom Construction's dividends are well-covered by both earnings and cash flows, with payout ratios of 16.9% and 8.7%, respectively. Despite a volatile dividend history over the past seven years, its current yield is in the top 25% of the AE market. Recent earnings show modest growth, with Q3 net income rising to US$21.6 million from US$16.1 million last year, supporting its dividend sustainability despite historical instability.

• Unlock comprehensive insights into our analysis of Orascom Construction stock in this dividend report.
• Our valuation report here indicates Orascom Construction may be undervalued.

Atea (OB:ATEA)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Atea ASA offers IT infrastructure and related solutions to businesses and public sector organizations in the Nordic countries and Baltic regions, with a market cap of NOK15.58 billion.

Operations: Atea ASA's revenue segments include NOK8.28 billion from Norway, NOK12.44 billion from Sweden, NOK7.37 billion from Denmark, NOK3.62 billion from Finland, and NOK1.76 billion from the Baltics, with an additional contribution of NOK9.20 billion from Group Shared Services.

Dividend Yield: 4.9%

Atea's dividend payments have grown steadily over the past decade, showing reliability and stability. However, with a high payout ratio of 101.2%, dividends are not well covered by earnings, raising concerns about sustainability despite being supported by cash flows with a 69.6% cash payout ratio. The current yield of 4.9% is below the top tier in Norway, and the stock trades at a significant discount to estimated fair value.

• Click to explore a detailed breakdown of our findings in Atea's dividend report.
• The valuation report we've compiled suggests that Atea's current price could be quite moderate.

Fuji (TSE:8860)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Fuji Corporation Limited designs, constructs, and sells detached houses and condominiums in Japan with a market cap of ¥27.64 billion.

Operations: Fuji Corporation Limited generates revenue through several segments, including Construction Related (¥2.71 billion), Housing Distribution (¥23.20 billion), Effective Use of Land (¥34.70 billion), Houses Built for Sale (¥40.25 billion), and Rental and Management (¥29.44 billion).

Dividend Yield: 3.5%

Fuji's dividends have been reliable and stable over the past decade, with payments consistently increasing. Despite a low payout ratio of 17.7%, indicating coverage by earnings, dividends are not supported by free cash flows, raising sustainability concerns. The dividend yield of 3.54% is below the top tier in Japan. Recent share buybacks totaling ¥269.14 million suggest a flexible capital policy but do not directly address cash flow challenges impacting dividend sustainability.

• Click here and access our complete dividend analysis report to understand the dynamics of Fuji.
• Our comprehensive valuation report raises the possibility that Fuji is priced higher than what may be justified by its financials.

Summing It All Up

• Delve into our full catalog of 1938 Top Dividend Stocks here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com